A Beaver County woman pleaded guilty Wednesday to a nearly $1.3 million health care fraud scheme.
Jacqueline Pelphrey, 50, of Freedom, waived her right to be indicted and pleaded guilty in federal court in Hartford, Conn., according to the Department of Justice.
Prosecutors say Pelphrey — formerly of Manchester, Conn. — defrauded Medicaid and other health insurance plans of $1.29 million while owning and operating Women’s Health Resources Inc.
The business sold post-mastectomy items, including breast prostheses, and submitted claims to health care benefit programs for them, the DOJ says.
Around August 2018, Pelphrey allegedly began submitting claims for items that clients never ordered or received.
Pelphrey could face up to 10 years in prison for the health care fraud charge.
She’s currently out on a $10,000 bond pending sentencing, which is scheduled for Dec. 29 in Bridgeport, Conn.
The U.S. Department of Health and Human Services, Office of the Inspector General and the FBI conducted the investigation.
This case falls under the DOJ’s National Fraud Enforcement Division. Chaired by Vice President J.D. Vance, the Fraud Division aims to eliminate fraud, waste and abuse in federal programs.
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